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"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Friday, September 23, 2011

Default Risk Rises on US Banks After Fed's Warning on Economy

Default Risk Rises on US Banks After Fed's Warning on Economy
BusinessWeek
Credit default swaps on US banks including Bank of America Corp. and Morgan Stanley surged. The credit swaps index, which rolled to a new series on Sept. 20, has climbed since the Fed said yesterday that it saw “significant downside risks” in the ...

Debt crisis deepens on Greek default fears
Financial Times
Its principled point was that taxpayers should not foot the bill entirely, even though credit rating agencies warned any signs of coercion would result in Greece being deemed in default – and the ECB warned that it would send a disastrous signal to ...

Greece on Edge of Insolvency 24 Centuries After First Default
BusinessWeek
“Contagion will be violent” as the price of the two-year Greek note tumbles below 30 cents per euro from about 65 cents now, predicts Sian. The European Central Bank would be the first responders through purchases of government debt, he says. ...

Flaherty urges Europe to act on financial crisis
CBC.ca
Beginning of Story Content Finance Minister Jim Flaherty said Europe must act decisively to deal with an ongoing financial crisis that threatens to plunge Greece into default. "It is important that Europeans take decisive action to resolve their debt ...

Default Swaps Hit Record With Bonds at Year Low: Japan Credit
BusinessWeek
22 (Bloomberg) -- The cost of insuring Japan's debt against default has risen to a record amid concern that Europe's debt crisis will spread beyond the region. Credit-default swaps tied to the nation's bonds for five years surged 12 basis points to 136 ...

US Treasury's Geithner: Partisan Fights Could Hinder Government
Wall Street Journal
By Kristina Peterson Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--US Treasury Secretary Timothy Geithner Thursday criticized partisan political bickering that led the country close to default on its debt this summer. The country can't let "a terrible ...

Japanese default insurance costs spike
Financial Times
By Lindsay Whipp in Tokyo Japan's sovereign credit default swaps are trading at record levels amid a deepening Eurozone debt crisis that is prompting investors to question the ability of other highly indebted governments to put their fiscal house in ...

Greenspan: Greece Could Default In Coming Weeks Without Tranche
Wall Street Journal
By Anjali Cordeiro NEW YORK (Dow Jones)--Former Federal Reserve Chairman Alan Greenspan said Thursday that markets are signaling worries that something could "break" and it appears that Greece could default in coming weeks without a new tranche of ...

Moody's U.S. speculative-grade default view rises
MarketWatch
The credit ratings company's forecast for the US speculative-grade default rate edged up to 2.2% for a year from now, from the 2.1% predicted in August. Both rates remain far below the credit crisis peak of 14.5% in November 2009. ...

Will Postal Service default on American dream?
Chicago Tribune
Without immediate congressional action, it will default on Sept. 30 on a mandatory $5.5 billion payment to prefund future retiree health benefits. To return to profitability, the Postal Service has asked Congress to approve legislation that would allow ...

El-Erian Says World Is on Eve of Another Financial Crisis
BusinessWeek
The Greek government said today it will accelerate budget cuts to keep emergency loans flowing, extending austerity measures that have deepened a recession and failed to ease doubts that it can avoid default. The latest round of deficit fighting was ...

Default rate for California college loans rises
California Independent Voter Network
by Bob Morris The default rate for college loans has risen sharply in California and the rest of the country, from 7% in 2008 to 8.8% in 2009. For-profit colleges have both the highest and fastest-growing rates of default. ...

Biggs Says World May Be `On Eve' of Financial Crisis
Washington Post
Sept. 22 (Bloomberg) -- Barton Biggs, managing partner and co-founder of Traxis Partners LP, talks about the plunge in US stocks and his investment strategy. Stocks slumped, giving the Dow Jones Industrial Average its biggest two-day decline since 2008 ...

Commerzbank Says Greek Default Poses Risk of 'Domino Effect'
BusinessWeek
22 (Bloomberg) -- European banks face the risk of a “domino effect” on debt markets were Greece todefault, a Commerzbank AG executive said today. Institutions would be able to handle a Greekdefault, regardless of the level of bondholder losses and ...

M&T's CEO Says Dodd-Frank Won't Prevent Another Financial Crisis
MarketWatch (press release)
"One devoutly wishes to be able to say that this new law has done that which it was passed to do: prevent the recurrence of a financial crisis like the one we have experienced. I fear very much, however, that it will likely fall short," said Wilmers. ...

TEXT-Fitch launches 'The Credit Crisis Four Years On' web portal
Reuters
Sept 22- Fitch Ratings has added a dedicated web portal to its website to house research related to its recently announced research campaign 'Structured Finance: The Credit Crisis Four Years On'. "By adding a dedicated web portal to the existing ...

UN general debate ranges from financial crisis to Mideast
Xinhua
by William M. Reilly UNITED NATIONS, Sept. 21 (Xinhua) -- A score and more of world leaders took to the podium of the UN General Assembly on Wednesday for the opening of the 66th annual general debate, but with a different voice. ...

IMF financial crisis indicator bodes ill for China
Breakingviews
In its annual Global Financial Stability Report the fund said that annual growth in an economy's credit-to-GDP ratio above five percentage points "can signal increased risk of a financial crisis about two years in advance." The fund said that nations ...

Financial markets slip back into the danger zone, warns IMF
Deutsche Welle
Five years after the beginning of the global financial crisis, the world economy is nowhere near recovery, according to the International Monetary Fund. Instead, things have only gotten worse due to politicians' failure to agree on an action plan, ...

RealClearWorld - Impact of a Eurozone Default on the Transatlantic ...
By Joe Quinland & Peter Sparding
It produced little in the way of concrete proposals to deal with Greece's acute funding issues and the risks of financial contagion. Only two months after a second bailout was agreed to by European ...Furthermore, a number of indicators suggest the markets have already begun to discount a default - yields on Greek bonds have soared to record highs, while the price for credit-default swaps to insure Greek debt has rocketed. Despite these punishing moves by investors, markets may be ...
RealClearWorld - Articles

Merkel Consults With The Pope On Financial Crisis
By Simone Foxman
German Chancellor Angela Merkel said she and Pope Benedict XVI spoke about financial markets after meeting with him today as he began a four-day visit to Germany. No word on exactly what he said. During his visit to Germany, the Pope ...
Business Insider

Greece Heads For Default | PRI's The World
By Clark Boyd
Analysts say it is looking more and more like Greece will default on its obligations. ... banking crisis in Europe,” Darvas said. “That would have an impact on the United States, and then we're looking at a renewed, full global financial crisis.” ...
PRI's The World

Marc Faber Warning: Bigger Financial Crisis on the Way ...
By SJB
Marc Faber Warning: Bigger Financial Crisis on the Way · Gold and Silver News: September 22, 2011 · Morgan Stanley's Exposure To French Banks Is 60% Greater Than Its Market Cap… And More Than Half Its Book Value · John Embry: Gold ...
SGTreport.com